Inventory Costing MethodsTerpsichore Company uses a perpetual inventory system. For 2018 and 2019, Terpsichore has the following data:ActivityUnitsPurchase Price (per unit)Sale Price (per unit)2018Beginning inventory100 $45 Purchase 1, Feb. 25700 52 Sale 1, Apr. 15600 $90 Purchase 2, Aug. 30500 56 Sale 2, Nov. 13600 90 Purchase 3, Dec. 20400 58 2019Sale 3, Mar. 8400 90 Purchase 4, June 28900 62 Sale 4, Dec. 18200 90 3. For each year, compute cost of goods sold, the cost of ending inventory, and gross margin using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 20182019Cost of goods sold????????????/Cost of ending inventory????????????????Gross margin?????????????????

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Description: Inventory Costing MethodsTerpsichore Company uses a perpetual inventory system. For 2018 and 2019, Terpsichore has the following data:ActivityUnitsPurchase Price (per unit)Sale Price (per unit)2018Beginning inventory100 $45 Purchase 1, Feb. 25700 5

Perpetual inventory system: Under this inventory system, the records of inventory are continuously…

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

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Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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Inventory Costing Methods

Terpsichore Company uses a perpetual inventory system. For 2018 and 2019, Terpsichore has the following data:

Activity	Units	Purchase Price (per unit)	Sale Price (per unit)
2018
Beginning inventory	100		$45
Purchase 1, Feb. 25	700		52
Sale 1, Apr. 15	600			$90
Purchase 2, Aug. 30	500		56
Sale 2, Nov. 13	600			90
Purchase 3, Dec. 20	400		58
2019
Sale 3, Mar. 8	400			90
Purchase 4, June 28	900		62
Sale 4, Dec. 18	200			90

3. For each year, compute cost of goods sold, the cost of ending inventory, and gross margin using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)

	2018	2019
Cost of goods sold	???	?????????/
Cost of ending inventory	????????	????????
Gross margin	??????	???????????

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